Market Bets on New Fed Chair Lift Rupiah
Jakarta. Rupiah strengthened on Thursday, closing 28 points higher against the US dollar as investors tracked growing speculation over the next Federal Reserve chair.
The currency ended the session at Rp 16,636 from Rp 16,664 a day earlier, after briefly touching a 30-point gain.
Market attention has turned to Kevin Hassett of the White House National Economic Council, who is increasingly viewed as a strong contender to replace Jerome Powell when his term ends in May 2026.
Ibrahim Assuaibi, Director at Traze Andalan Futures, said that Hassett’s close ties to President Donald Trump and expectations he may push for deeper rate cuts than Powell.
Trump has repeatedly urged aggressive interest-rate reductions to boost the US economy, even as the Fed has remained cautious amid stubborn inflation. “Some Fed officials said over the past week that supporting the labor market takes priority over stagnant inflation, and that price pressures may ease in the coming months,” Ibrahim said on Thursday. He added that future US rate decisions will remain a key driver for the rupiah.
The local currency also firmed against a backdrop of China considering multi-year property stimulus and renewed US efforts to advance a peace framework in the Russia-Ukraine conflict, with Ukrainian President Volodymyr Zelenskiy signaling readiness to move forward.
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